It seems Apple might buy Warner Bros. Discovery, the media and entertainment company that owns HBO, CNN and other high-profile properties. Apple reportedly expressed interest in acquiring parts of the company, particularly its extensive film and television library, as the media giant explores a potential sale, according to a report Thursday.
Such a deal would be a massive boost for Apple TV, adding depth to the streaming service’s catalog.
Apple might buy Warner Bros. Discovery
Warner Bros. Discovery CEO David Zaslav informed senior executives that several major tech and media companies — including Apple, Amazon, Netflix and Comcast — showed interest in acquiring the company’s assets, Bloomberg reported. The media conglomerate, which owns Warner Bros. Entertainment, HBO, CNN, DC Entertainment, Discovery Channel and Cartoon Network, is looking to sell as a whole or in parts.
A strategic opportunity for Apple TV
For Apple, which has not commented on any intentions it may have regarding Warner Bros. Discovery, the acquisition would represent a significant shift in strategy for its Apple TV streaming service, recently rebranded from Apple TV+. So far, it has positioned itself as an all-original content streaming service. Adding Warner Bros. Discovery’s catalog would instantly give Apple access to some of television’s most prestigious and popular content, including HBO hits like Game of Thrones, The White Lotus and Silicon Valley.
Market research from Antenna indicated 21% of HBO subscribers in the United States also pay for Apple TV. That suggests there could be pretty strong demand among Apple’s streaming audience for HBO content. Bringing these titles in-house could dramatically expand Apple TV’s reach and appeal.
Apple’s acquisition history and approach
Any deal would mark a dramatic departure from Apple’s typical acquisition strategy. To date, the company’s largest purchase was Beats Electronics for $3 billion in 2014. Acquiring Warner Bros. Discovery assets, even in parts, would cost tens of billions of dollars.
Apple services chief Eddy Cue recently addressed acquisition speculation on The Town podcast, saying the company generally prefers to build rather than buy.
“We’re not actively looking at buying any company of any size,” Cue said. “We like building things ourselves.” However, he added that he “never says no to anything” and acknowledged that “you never know what happens in the world.”
The competitive landscape
Apple isn’t alone in its interest in Warner Bros. Discovery. Paramount Skydance already made two unsuccessful bids of $24 per share for the entire company, both rejected by Warner Bros. Discovery. The media giant is expected to ask potential bidders to sign nondisclosure agreements soon, allowing them to review sensitive financial data before deciding whether to make formal offers.
Historical context suggests Apple has long been interested in HBO specifically. The company reportedly inquired about purchasing HBO from AT&T Time Warner a decade ago, but balked when AT&T insisted on including cable networks in the deal. Apple didn’t want that baggage.
Whether Apple will ultimately pursue a deal remains uncertain, but the company’s involvement signals it may be reconsidering its build-only approach to content as streaming competition intensifies.
